Banks able to meet withdrawals — BSP
The banking industry remained healthy, with most banks able to meet withdrawals by their depositors, the central bank said on Tuesday. As of end-September, the banking industryâs capital adequacy ratio, which measures a bankâs capital in relation to the risks it takes, exceeded the regulatory minimum of 10 percent and better than the Basel Accordâs 8-percent requirement. Regulators use the ratio to monitor the health of the financial system. The industry ratio on a solo basis, which includes banking operations here and abroad, stood at 14.82 percent. On a consolidated basis, which includes banksâ subsidiaries, the ratio stood at 15.76 percent, the Bangko Sentral ng Pilipinas (BSP) said in a statement. Both were slightly better than the ratios at the end of June 2009. The central bank traced the higher capital adequacy ratio to the growth in banksâ qualifying capital and risk-weighted assets. Universal and commercial banksâ ratio of 14.94 percent on a solo basis was 0.04 percentage point lower that in the previous quarter. Including their subsidiaries, the ratio was 0.1 percentage point higher at 15.98 percent as of end-September. Meanwhile, thrift banksâ capital adequacy ratio was 0.68 percentage point better at 12.16 percent on both solo and consolidated bases. Rural and cooperative banksâ ratio on a solo basis was flat 18.03 percent as of end-September. By peer group, rural banksâ 18.27-percent ratio caused the 0.14 percentage drop in the industryâs CAR from the second quarter of last year. On the other hand, cooperative banksâ ratio of 15.56 percent was 0.12 percentage point better, the central bank said. â N.P. Aquino, GMANews.TV